Shri Niwas Leasing and Finance Limited reported a sharp decline in profitability for the quarter ended June 30, 2026, as net profit after tax fell to ₹16.33 lakh from ₹1,04,954.48 lakh in the corresponding quarter of FY26. The company’s total income from operations contracted by 64.5% to ₹25.49 lakh, compared to ₹71.91 lakh in Q1FY26.

The board of directors approved the unaudited financial results on August 12, 2026. The filing was submitted to the stock exchanges pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company’s earnings per share (basic and diluted) stood at ₹0.30 for Q1FY27, a steep drop from ₹238.71 in Q1FY26. Paid-up equity share capital decreased to ₹544.04 lakh from ₹2,398.20 lakh reported in the preceding quarter, indicating potential capital restructuring or buybacks during the period.

What the Numbers Show

The divergence between the current quarter’s performance and the prior year is stark. While Q1FY27 shows modest operational income of ₹25.49 lakh, Q1FY26 recorded net profit before tax of ₹1,04,954.48 lakh against income of ₹71.91 lakh. This suggests that the prior year’s profitability was heavily influenced by non-operational or exceptional items, given that the pre-tax profit figure exceeded total operational income by a massive margin. In contrast, Q1FY27’s pre-tax profit (₹16.33 lakh) aligns closely with its post-tax profit, indicating a return to normalised, albeit lower-volume, operational earnings.

Shri Niwas Leasing and Finance Limited reported a net profit of ₹16.33 lakh for the quarter ended June 30, 2026, marking a steep decline from ₹1,049.54 lakh in the same period of the previous fiscal year. The Shri Niwas Leasing and Finance board approved the unaudited financial results on August 12, 2026, following a limited review by statutory auditors VRSK & Associates.

Total income for the quarter fell to ₹25.49 lakh, down from ₹71.91 lakh in Q1FY25. This contraction was primarily driven by interest income, which declined to ₹25.49 lakh from ₹71.91 lakh year-on-year. In contrast, total expenses stood at ₹9.16 lakh, significantly lower than the ₹1,048.83 lakh recorded in the corresponding quarter of FY25, largely due to the absence of impairment charges on financial instruments that had impacted the prior year.

Financial Performance Overview

The company’s earnings per share (basic and diluted) were reported at ₹0.30, compared to ₹238.71 in Q1FY25. For the full financial year ended March 31, 2026, the company logged a net profit of ₹1,059.65 lakh on total income of ₹148.50 lakh.

What the Numbers Show

A key divergence in the current quarter’s performance is the complete absence of impairment charges on financial instruments, which totaled ₹1,048.97 lakh in Q1FY25. While this non-recurring expense reduction contributed to lower total expenses in Q1FY27, it coincided with a 64.6% drop in core interest income. This suggests that while asset quality pressures eased compared to the prior year, the company’s revenue generation capacity has contracted significantly, leading to a near-total erosion of profitability despite the improved expense profile.

The company confirmed that Regulation 32 of the SEBI (LODR) Regulations, 2015, regarding deviations in the use of proceeds from public issues, is not applicable as no such issues were undertaken during the quarter.